Hong Kong has given Signum Digital permission to sell security tokens.
After welcoming applications for virtual asset trading licenses, Hong Kong’s Securities and Futures Commission approves Signum Digital to trade security tokens in the city.
Signum Digital, a Coinstreet and Somerley joint venture, has announced that it has gained preliminary permission from the Hong Kong Securities and Futures Commission (SFC) for its security token offering (STO) and subscription platform.
Security tokens are a new type of digital asset based on blockchain technology that reflect ownership of tangible assets such private equity, real estate, art, and collectibles. Because the tokens are tied to real-world assets, they may reduce risks for potential investors, make research easier, and offer a foundation for the market value of the investment opportunity.
Signum Digital claims that after receiving final approval from Hong Kong’s SFC, it will handle the STO platform under the brand name “CS-Pro.” According to Signum, this platform will be a pioneering development in Hong Kong.
The Hong Kong SFC announced provisional regulations for virtual asset trading platforms last month and encouraged the public to submit feedback. The SFC has mandated that digital currency exchanges submit license applications that will allow everyday investors to trade particular high-capitalization tokens under the future licensing system, which is set to commence in June.
Since last year, when it asked firms interested in providing STO services to make concepts, Hong Kong has been proposing fresh measures for the city’s bitcoin and digital asset market.
Huobi Global, a cryptocurrency exchange, also stated last month that it is looking for a license to operate in Hong Kong, with the possibility of relocating its headquarters from Singapore to the special administrative region.
Hong Kong has recently expressed strong interest in becoming a crypto center, investing extensively in technologies such as Web3.
Hong Kong established the first two exchange-traded funds for cryptocurrency futures in mid-December 2022, raising more than $70 million ahead of their debut. The event occurred shortly after the chairman of Hong Kong’s SFC indicated in October that Hong Kong is willing to differentiate its crypto regulating approach from the Mainland crypto ban, which will be implemented in 2021.